Boston Beer (SAM) AI Stock Analysis

• Market Cap: $2.23B
• Dividend Yield: N/A
• Average Volume (3M): 220.36K
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.23
• Revenue Growth: 0.79%
• EPS Growth: -24.27%
• Country: US
• Employees: 2,537
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Beverages - Alcoholic
• EPS (TTM): 2.16
• Shares Outstanding: 9,078,006
• 10 Day Avg. Volume: 320,260
• 30 Day Avg. Volume: 220,364
• PEG Ratio: 0.17
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.11
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: 3.95
• 1Y Price Target: $262.11
• Price Target Upside: 27.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 65 Neutral
• Price Target: $201.00 ▼(-2.08%Downside)

Boston Beer's solid financial performance and strategic initiatives such as stock repurchases support its long-term prospects. However, current technical indicators suggest bearish momentum, and valuation metrics imply it may be overvalued, limiting short-term upside. Mixed earnings call sentiment and tariff concerns further temper the outlook.

Positive Factors

Financial Performance

SAM delivered a notable beat to revenue, gross margin and EPS, marking a good start to the year.

Market Expansion

A 3x increase in distribution will provide better visibility on performance and incrementality over the coming months.

New Product Launch

There is a clearer path towards volume and topline growth for SAM, supported by the planned national launch of Sun Cruiser with significant advertising spend.

Negative Factors

Advertising and Costs

Higher A&P, G&A and non-operating expenses resulted in a 4Q earnings miss.

Product Performance

Analysts are more cautious given continued weak trends for Twisted Tea, which accounts for nearly 60% of SAM's volumes in tracked channels.

Tariffs Impact

SAM now estimates that announced tariffs could be a significant EPS headwind this year before mitigation efforts.

Boston Beer Business Overview & Revenue Model

Company Description

The Boston Beer Company, Inc., known for its flagship brand Samuel Adams, is a leading American brewery headquartered in Boston, Massachusetts. Founded in 1984, the company is renowned for its pioneering role in the craft beer movement and produces a wide range of alcoholic beverages, including craft beers, hard ciders, and hard seltzers. Its product portfolio includes well-known brands such as Samuel Adams, Angry Orchard, Truly Hard Seltzer, and Twisted Tea, catering to diverse consumer preferences in the alcoholic beverage sector.

How the Company Makes Money

The Boston Beer Company generates revenue primarily through the production, marketing, and sale of its diverse range of alcoholic beverages. Key revenue streams include sales of its Samuel Adams beers, which have established a strong market presence in the craft beer segment. Additionally, the company has successfully expanded into the hard seltzer and cider markets with its Truly and Angry Orchard brands, respectively, capitalizing on consumer trends towards alternative alcoholic beverages. The company operates through a network of distributors and retailers, which helps to ensure widespread availability of its products across the United States and select international markets. Strategic partnerships, such as those with wholesalers and distributors, play a crucial role in expanding brand reach and driving sales volume. Furthermore, Boston Beer's innovation in product development and marketing strategies contributes to maintaining its competitive edge and supporting its financial performance.

Boston Beer Financial Statement Overview

Summary

Boston Beer demonstrates solid financial health across its financial statements. The company maintains a stable income statement with consistent profitability margins, a strong balance sheet with low leverage, and excellent cash flow metrics that support its operational and strategic flexibility. While revenue growth has been modest, the firm's ability to generate cash and maintain low debt levels provides a solid foundation for future growth opportunities.

Income Statement

Boston Beer has shown a stable financial performance with a consistent gross profit margin of around 44%, reflecting strong profitability in its operations. The net profit margin has improved in the TTM period to 3.4% from 2.8% in the previous year, indicating better cost management or pricing strategy. Revenue growth has been relatively flat over the last period, which could be a concern if not addressed with strategic initiatives. The EBIT and EBITDA margins have seen some fluctuations, with the TTM EBIT margin at 4.7% and EBITDA margin at 11.5%, indicating manageable operating profitability.

Balance Sheet

The company's balance sheet reflects a strong equity position with an equity ratio of approximately 72.3% in the TTM, indicative of financial stability. The debt-to-equity ratio is low at 0.052 in the TTM, suggesting low financial leverage and risk. Return on Equity (ROE) stands at 8% for the TTM, which signifies moderate returns for shareholders. The company seems to have a reliable financial footing, though improvement in asset utilization could enhance overall returns.

Cash Flow

Boston Beer's cash flow performance is robust, with a strong operating cash flow to net income ratio of 3.58 in the TTM, indicating efficient cash conversion from operations. The free cash flow to net income ratio is also healthy at 2.59, showing good cash generation after capital expenditures. Free cash flow growth has been positive, supported by stable operating cash flows and reduced capital expenditure requirements. This positions the company well for future investments or debt repayment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.07B	2.01B	2.01B	2.09B	2.06B	1.74B
Gross Profit	926.65M	893.73M	852.37M	861.99M	797.79M	814.45M
EBITDA	265.35M	245.78M	209.96M	242.67M	87.13M	317.44M
Net Income	71.51M	59.70M	76.25M	67.26M	14.55M	191.96M
Balance Sheet
Total Assets	1.24B	1.25B	1.43B	1.42B	1.39B	1.38B
Cash, Cash Equivalents and Short-Term Investments	152.45M	211.82M	298.49M	180.56M	26.85M	163.28M
Total Debt	46.85M	35.94M	45.27M	54.14M	61.48M	67.40M
Total Liabilities	343.21M	333.83M	352.06M	352.22M	408.17M	421.86M
Stockholders Equity	897.01M	916.19M	1.08B	1.07B	983.41M	956.97M
Cash Flow
Free Cash Flow	185.25M	172.62M	201.06M	109.36M	-91.62M	113.41M
Operating Cash Flow	255.72M	248.89M	265.15M	199.94M	56.30M	253.41M
Investing Cash Flow	-70.42M	-96.25M	-62.38M	-88.51M	-146.62M	-139.12M
Financing Cash Flow	-238.29M	-239.31M	-84.84M	2.80M	-6.64M	12.32M

Boston Beer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 205.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAM, the sentiment is Negative. The current price of 205.28 is below the 20-day moving average (MA) of 206.62, below the 50-day MA of 226.68, and below the 200-day MA of 259.90, indicating a bearish trend. The MACD of -10.46 indicates Positive momentum. The RSI at 38.59 is Neutral, neither overbought nor oversold. The STOCH value of 37.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAM.

Boston Beer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUD	79 Outperform	$138.55B	23.69	7.31%	1.51%	0.64%	10.02%
ABEV	78 Outperform	$38.62B	14.90	15.09%	3.62%	1.25%	-13.02%
FIZZ	77 Outperform	$4.21B	22.70	40.81%	―	0.34%	9.48%
SAM	65 Neutral	$2.23B	32.99	7.36%	―	0.79%	-24.27%
TAP	65 Neutral	$9.96B	9.87	7.90%	3.83%	-5.17%	-0.74%
Sector *	65 Neutral	$27.28B	15.30	-4.01%	3.16%	1.00%	1.98%
STZ	61 Neutral	$28.54B	49.10	-5.05%	2.45%	-0.47%	-117.62%

Boston Beer Corporate Events

Boston Beer Announces Stock Repurchase Plan

Boston Beer Company held its 2025 Annual Meeting of Stockholders on May 14, 2025, where significant decisions were made regarding the election of directors and approval of executive compensation. The meeting saw the election of Class A and Class B Directors for one-year terms, the ratification of Deloitte & Touche LLP as the independent accounting firm, and the approval of executive compensation policies. Additionally, the company announced a 10b5-1 plan to repurchase up to $50 million of Class A Common Stock, reflecting a strategic move to manage liquidity and investment diversification.

The most recent analyst rating on (SAM) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on Boston Beer stock, see the SAM Stock Forecast page.